For a good portion of this year, investors have been regaled with tales of alleged small-cap strength by way of the rising dollar, which implies small-cap stocks and the exchange-traded funds that hold them should be beneficiaries of rising interest rates.
That has not been the case, however, as the iShares Russell 2000 Index (ETF) (NYSE: IWM), the largest small-cap ETF, has fallen half a percent year-to-date, while the S&P 500 is higher by nearly 1 percent.
The iShares S&P SmallCap 600 Index (ETF) (NYSE: IJR) has been better with a 1.5 percent year-to-date gain, but that is far from awe-inspiring.
What Would An Interest Rate Hike Mean?
With the Federal Reserve seemingly on course to raise interest rates in December, investors should be pondering what the near term holds for ETFs such as IJR and IWM.
/www.benzinga.com/analyst-ratings/analyst-color/15/11/5970473/of-rate-hikes-and-small-cap-etfs alt=Of Rate Hikes And Small-Cap ETFs>Full story available on Benzinga.com
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